The Ontario and Canadian governments have allocated $1 billion to assist municipalities that do not impose development charges in enhancing and maintaining crucial infrastructure. This initiative was unveiled by Todd McCarthy, the acting minister of infrastructure in Ontario, Rob Flack, the minister of municipal affairs and housing in Ontario, and Jennifer McKelvie, the parliamentary secretary to the federal minister of housing and infrastructure, during the Association of Municipalities of Ontario (AMO) conference held in Ottawa.
Under the new stream of the Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million. This funding is specifically designated for municipalities that do not collect development charges to support the construction of essential infrastructure such as bridges, roads, and water systems, facilitating new housing developments and safeguarding existing housing stock.
McCarthy expressed his satisfaction with the collaboration between federal, provincial, and municipal authorities, emphasizing the positive impact of such partnerships. Initially stating that the $1 billion funding was separate from the $8.8 billion previously pledged by both levels of government in March, McCarthy later clarified that the new funding was part of the existing $8.8 billion agreement.
The City of Toronto has been allotted up to $1.5 billion to offset the financial implications of reducing development charges, while the City of Ottawa is set to decrease development charges by 54% to receive $478 million in infrastructure funding.
Premier Doug Ford urged municipalities to further reduce development charges, noting the high demand for funding compared to available resources. The government announced that municipalities covered under the new stream will not be required to contribute 10% of the infrastructure cost to access the $8.8 billion funding.
Applications for the new funding stream are scheduled to open on October 29, with project selections anticipated in the spring. Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), commended the funding, emphasizing its potential to benefit numerous communities.
McCarthy highlighted the significance of the funding stream in supporting local economies amid uncertainties related to U.S. tariffs. He underscored the challenges faced by municipalities in infrastructure development due to repair backlogs, escalating construction costs, and limited funding sources, particularly in the absence of development charges.
AMO’s outgoing president, Robin Jones, echoed the importance of infrastructure funding, particularly for rural, small, and northern communities. The Ontario Big City Mayors (OBCM) group emphasized the need for decisive action to address homelessness and addiction issues in the province, advocating for the establishment of a dedicated ministry, expanded treatment options, legislative reviews, and a potential state of emergency declaration.
Mayor Marianne Meed Ward of Burlington, Ont., chair of the OBCM, emphasized the necessity of exploring all avenues to address the crisis effectively. She disclosed plans to engage with provincial officials during the AMO conference, where Premier Doug Ford is scheduled to deliver an address on Monday.
The AMO conference is set to continue until Wednesday in Ottawa, providing a platform for further discussions and initiatives aimed at enhancing municipal governance and addressing key societal challenges.